Employer Obligations Under Indonesia’s New Law on Maternal and Child Welfare

On July 2, 2024, the Government of Indonesia enacted Law No. 4 of 2024 regarding Maternal and Child Welfare During the First Thousand Days of Life (“Law 4/2024”).

This long-awaited law is expected to improve the welfare of mothers and children (defined under the provisions of this law as from formation of the fetus up to the age of 2) in Indonesia.  This includes the stipulation that babies should be exclusively breastfed for the first six months of life and continue breastfeeding until the age of 2, unless there are valid medical reasons breastfeeding is not possible or the mother is separated from the child.

While a number of the provisions of Law 4/2024 overlap with provisions of Law No. 13 of 2003 regarding Manpower, as amended (the “Manpower Law”), this new law will still impact employers in Indonesia and their obligations to working mothers.

In principle, Law 4/2024 sets out several rights of working mothers, including:

1. the right to maternity leave;
2. the right to leave due to miscarriage;
3. the right to adequate facilities and time to express breast milk while at work;
4. the right to sufficient time off in their children’s best interest; and
5. the right to affordable daycare.

This article will focus on the rights of working mothers, working fathers and other general issues that should be taken into consideration by employers.

Maternity Leave

A key provision of Law 4/2024 provides that working mothers are entitled to at least three months of maternity leave after giving birth, with up to an additional three months of maternity leave if there is a special circumstance as evidenced by a doctor’s certificate.

This differs from the Manpower Law, which stipulates that maternity leave is to be taken 1.5 months prior to giving birth and 1.5 months after giving birth, which can be extended with a doctor’s or midwife’s certificate before or after birth.

While in practice working mothers in Indonesia typically take three months maternity leave after giving birth, Law 4/2024 now explicitly regulates that maternity leave is to be taken for the first three months as from the birth of the child. It also endorses the certainty of up to an additional three months of maternity leave if there is a special circumstance as evidenced by a doctor’s certificate.

This is in line with the stated intent of Law 4/2024 to ensure the welfare of children in the first six months of life.

Salary Requirements During Maternity Leave

Both the Manpower Law and Law 4/2024 require that employers continue to pay the salaries of employees on maternity leave. While the Manpower Law requires employers to pay employees’ full salary during maternity leave, Law 4/2024 provides a decreasing scale of salary payment depending on the length of the maternity leave, as follows:

• 100% of salary during the first three months;
• 100% of salary during the fourth month; and
• 75% of salary during the fifth and sixth months.

Law 4/2024 further establishes that the right to maternity leave and to receive pay during maternity leave is an inseparable right of employees protected by laws and regulations in the field of manpower.

It should be noted that both the Manpower Law and Law 4/2024 to a certain extent provide the right to extend maternity leave for more than the initial three months with a doctor’s or midwife’s note, with the certainty that employees will continue to be paid during this extended maternity leave.

However, different from the Manpower Law, Law 4/2024 stipulates that employees are entitled only to 75% of their salary during the fifth and sixth months of maternity leave. It will be interesting to see how the Ministry of Manpower addresses this inconsistency. Employers will also have to address this issue in their company policies.

Criminal Sanctions for Employers

The Manpower Law stipulates criminal sanctions for employers that violate the maternity leave provisions in the form of imprisonment ranging from one to four years and/or fines from Rp.100 million to Rp.400 million.

Additional Employer Obligations Under Law 4/2024

In addition to the right to maternity leave, Law 4/2024 extends the right to paid leave of 1.5 months or any other period as recommend by a doctor, obstetrician or midwife in the event of a miscarriage.  This is consistent with the provisions under the Manpower Law.

Note that both the Manpower Law and Law 4/2024 convey the certainty that no female employee who exercises her right to maternity leave or leave due to a miscarriage can be terminated.

Law 4/2024 also stipulates that working fathers are entitled to two days of paid paternity leave during delivery and up to an additional three days after delivery or other period as may be agreed with the employer. Working fathers are also entitled to two days of paid leave in the event of a miscarriage.  The Manpower Law only provides for two days of paid leave for both instances.

Law 4/2024 mandates that every working woman has the right to adequate opportunities and facilities to breastfeed, express and/or store expressed breast milk during work hours, including daycare, and sufficient time off if necessary for the best interests of the child.

Employers must also adjust the duties, work hours and/or workplace of working mothers as necessary, while still considering work conditions and achievement targets.

Law 4/2024 also provides that mothers with disabilities enjoy various rights as guaranteed under relevant laws and regulations on the rights of persons with disabilities.

Takeaways

Employers should begin the process of ensuring compliance with Law 4/2024 with the consideration that the government is expected to issue implementing regulations for Law 4/2024 within the next two years.

Law 4/2024 is effective as of the date of its enactment, i.e., July 2, 2024.

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